My husband and I are getting ready to purchase a home in Southern California; we are looking at a Calvet loan to purchase a Foreclosure. We contacted a mortgage broker to help us with this process and she said that before we can submit the loan application we need to get an offer accepted. I looked in the Calvet website and didn’t see this information, does anyone have experience with this loan?
I looked at their web site and the Broker seemed to be giving advice that runs counter to that on the cite. On their site there is a list of approved mortgage brokers and contact information.
Definitely make sure your broker is on that list. Also, what he may have been referring to is that since the CalVet program does not allow for underwriting pre-approval prior to finding a property he could not make any guarantees. But as long as your credit, income, and property are in line with the guidelines then you shouldn't have any problems.
I will be frank, the Calvet loan seems good on the surface, but in depth most vets are upset after the fact. Truth is this: you are essentially leasing your home through a special contract from the state of CA. You cannot refi or access future equity in your home without first paying off the calvet loan. The rate though you will be told it is fixed, it really is not because the MUNI bonds that back the mortgage if they dont perform well the state has full power to adjust your rate should they want. CA is going bankrupt and i would not be suprised to hear soon that Calvet loans are adjusting the rates higher to offset some of the states losses. Stick the FEDERAL program in my opinion
